Wells Fargo agrees to pay $37M in bid-rigging case

[November 09, 2011]  DES MOINES, Iowa (AP) -- Wells Fargo & Co. says it has agreed to pay at least $37 million in a lawsuit which alleges several banks rigged bidding competitions to win business from state and local governments.

Banks help municipalities invest the money they raise from bond offerings to earn interest before paying for projects. They compete by submitting to state and local governments the best yield they can offer.

The lawsuit filed in New York alleges several banks rigged the process.

Wells Fargo said Tuesday in a regulatory filing that it reached a settlement on Oct. 21.

If approved by the court, the San Francisco bank will pay $37 million or 65 percent of the restitution amount of a future settlement, if one is reached, with various state attorneys general.

[Associated Press]

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